A senior Sebi official on Thursday said a lot of filings made by companies to the stock exchanges “probably leave a lot for imagination”, urging clearer, fairer and easier-to-understand disclosures for investors.

Rajesh Dangeti, chief general manager in Sebi’s Corporation Finance Department, told a Ficci conference that frequency should not trump clarity. Under Sebi norms, listed companies must disclose material information on time to protect shareholders, including minority investors.

“It’s all about how you ensure that information is given not only frequently but fairly and in a manner which is easily understood by the investors… You get to see a lot of disclosures where probably it leaves a lot for imagination,” Dangeti said.

“Personally, when I go through the disclosures being given in the stock exchanges, we find, yes, in the letter, there is a disclosure. But in spirit, whether there is a disclosure. I think that should be kept in mind,” he added.

Dangeti also wondered whether timelines for some items now reported quarterly should be tightened. At the same time, citing the depository system and wider use of technology, he asked if certain periodic filings could be less frequent.

Dangenti said, “We are in a stage where a lot of disclosures, including shareholding patterns, financials, are being given, probably quarterly. Do you think the time has come? It’s a question for the corporate world. Do you think the time has come for the frequency to be reduced?”

Cyber security

Meanwhile, Sebi on Thursday clarified that the cybersecurity and cyber resilience framework applies only to systems used exclusively for its regulated activities.

Shared infrastructure will also be audited if not already covered by the RBI or another
regulator.